Unsure Times for Insurer Fairfax Financial

Wanna see what Warren Buffett's worst nightmare looks like? Then take a glance at Fairfax Financial (FFH Quote), the troubled Canadian investment company that owns a raft of American insurance firms.

Toronto-based Fairfax used to be known as the Berkshire Hathaway (BRK.A Quote) of the North because of its Buffett-aping CEO and its enviable record of earning strong returns by buying cheap companies. After a recent series of stumbles, though, it's clear that chief exec Prem Watsa has fallen well short of the Sage of Omaha.

Now, has Fairfax fallen into a deep hole it can't climb out of? That is the question hanging over the publicity-shy, Indian-born Watsa as he leads the company into what is shaping up as its toughest year yet.

Tough Times

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